KARACHI: Inflows of Roshan Digital Accounts (RDA) rose to $ 4.4 billion at the end of May 2022. According to State Bank of Pakistan (SBP), inflows of RDA continued to surge and increased by $189 million during May 2022. Overall, RDA inflows reached $4.356bn as of May 2022 compared to $ 4.167 billion as of April 2022.
However, the fresh inflows of RDA in May 2022 are less than April 2022, in which the country fetched deposits worth $247 million. Analysts said that the slowdown in RDA inflows is because of ongoing political uncertainty in the country.
The major inflows of investment arrived in Naya Pakistan Certificates (NPC). Out of total inflows, some $2.839 billion were invested in Naya Pakistan Certificates as of May 2022 up from $2.753 billion in April 2022.
Analysts said that as the rate of return on NPC is unchanged ranging between 5 to 7 percent, while the yield on Pakistan’s Eurobonds have increased significantly. Eurobond 2024 is yielding 22 percent versus maximum 7 percent of NPC. Therefore, analysts are expecting some shift of funds between these investment opportunities.
In addition, increase in uncertainty on the economic and political front might have also contributed to investment in RDA.
It may be mentioned, there were some rumours that the government of Pakistan may impose some restrictions on Foreign Currency Accounts (FCAs), Roshan Digital Accounts (RDAs) and Safety Deposit Lockers.
However, the federal government and the State Bank on Monday categorically denied rumours of restrictions on foreign currency accounts and assured all account holders maintaining FCAs, RDAs and Safety Deposit Lockers in banks and said that their accounts and lockers are completely safe.
“Such rumours are absolutely incorrect and baseless”, the ministry of finance and SBP said in a joint statement. Moreover, foreign currency accounts including RDAs are legally protected under the Foreign Currency Accounts (Protection) Ordinance 2001, and the government and the State Bank are committed to protecting all the financial assets in Pakistan including the ones mentioned above.
Copyright Business Recorder, 2022